Job losses in US economy
The U.S. economy lost 92,000 jobs in February, with unemployment rising to 4.4%, but the 'actual economic struggle' is larger than the headline suggests.
The February jobs report was "overwhelmingly disappointing," with the largest monthly job loss since 2020, excluding the October government shutdown. Economists had expected job gains, with some estimates around 50,000 to 63,000. The report indicates the labor market has essentially seen zero net job creation in the last six months. Several sectors experienced losses, including healthcare (-28,000), information (-11,000), and federal government (-10,000). Strike activity in California, Hawaii, and New York contributed to the healthcare job losses. The information sector continues its downward trend, losing an average of 5,000 jobs per month over the past year. The White House's efforts to cut federal payrolls have resulted in a decrease of 330,000 jobs (11% of the workforce) since October 2024. Other sectors experiencing losses include manufacturing (-12,000), construction (-11,000), and transportation and warehousing (-11,000). Social assistance was a bright spot, adding 9,000 jobs. Revisions to previous reports further dampen the outlook. December's numbers were revised down by 65,000, and January's by 4,000. The total number of jobs added in 2025 was revised down to 181,000, the weakest since COVID. This is a substantial decrease from the 2 million jobs added in 2024. Despite the overall negative trend, average hourly earnings increased by 0.4% to $37.32 in February. This represents a 3.8% increase over the past 12 months. However, some economists suggest that the concentration of job growth in healthcare masks a general malaise in other sectors.
